If you're a fan of growth shares then you'll be pleased to know there are plenty of quality options to choose from on the Australian share market.
Three high quality options that have recently been given buy ratings are listed below. Here's why these ASX growth shares are rated highly right now:
Adore Beauty Group Limited (ASX: ABY)
Adore Beauty could be an ASX growth share to buy. It is a leading online retailer in the $11.2 billion Australian beauty and personal care market. Adore Beauty has been growing strongly over the last few years thanks to its highly successful business model. Its integrated model combines online retail with education and entertainment, making its website a destination for consumers even when they're not purchasing items. During the first quarter of FY 2022, Adore Beauty reported revenue of $63.8 million, up 25% on the prior corresponding period. This is still only a small slice of its addressable market. UBS is positive on Adore Beauty. It currently has a buy rating and $6.00 price target.
PointsBet Holdings Ltd (ASX: PBH)
PointsBet is another ASX growth share to look closely at. It is a sports betting operator and iGaming provider offering innovative sports and racing betting products and services via a scalable cloud-based platform. PointsBet has been growing at a rapid rate over the last few years thanks to its growing customer base in both the ANZ and US markets. Looking ahead, the team at Goldman Sachs expect this positive form to continue and is forecasting very strong growth over the coming years as its US expansion continues. This will be supported by its game-changing deal with leading US sports broadcaster NBCUniversal. Goldman currently has a buy rating and $12.79 price target on the company's shares.
Xero Limited (ASX: XRO)
A final ASX growth share to look at is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses. Like the others, Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. This is thanks to its international expansion, acquisitions, the transition to the cloud, and its app ecosystem. The latter has significant monetisation potential. Goldman Sachs is also very positive on Xero and believes it is capable of delivering strong revenue growth over multiple decades. Goldman has a buy rating and $158.00 price target on its shares.
